Number of Periodic Payments to Fully Amortize a Mortgage
Example 2: An investor can afford to pay $440 per month on a $56,000 Canadian Mortgage. If the annual interest rate is 9 1/4 %, how long will it take to completely amortize this mortgage?
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| 0.76 | Canadian mortgage factor. |
6 | 200 |
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9.25 |
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440 |
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| Monthly payment. | |
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56000 | 0 | 437.00 | Total number of monthly payments. | |
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Effective Interest Rate (Yield)
Example 3: A Canadian mortgage has monthly payments of $612.77 with a maturity of 25 years. The principal amount is $75,500. What is the annual interest rate?
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25 | 0.72 | Canadian mortgage factor. |
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612.77 |
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75500 |
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6 | 0 |
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200 | 8.75 | Annual interest rate. |
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Balance Remaining at End of Specified Period
Example 4: A Canadian mortgage has monthly payments of $612.77 at 8.75% interest. The principal amount is $75,500. What will be the outstanding balance remaining at the end of 10 years?
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